GOLD is the﻿ money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Monday, February 13, 2017

Fed Insider: The Debt Is Unsustainable:Danielle DiMartino Booth

Fed Insider: We Have Been Put On Notice, The Debt Is Unsustainable:Danielle DiMartino Booth

Transcript :
today's guest is danielle
0:26
DeMartino booth
0:28
Danielle spent nine years as a senior
0:30
financial analyst with the federal
0:31
reserve of dallas and served as an
0:33
advisor on monetary policy to dallas
0:35
Federal Reserve President Richard W
0:37
Fisher until his retirement
0:40
danielle has a new book out called set
0:41
up it will be released on febuary 14 and
0:44
I am very happy and honored to have
0:46
Danielle on the x20 report spotlight
0:48
danielle welcome to the spotlight
0:49
I'm so happy here today thank you for
0:51
being on here and you are upset insider
0:55
you work for the Fed did you quit the
0:57
fed well I wouldn't say I quit the fact
1:00
that that's kind of a strong word i
1:01
followed in whatever this one of the
1:03
most hawkish hawks in central banking
1:05
history and I call him out
1:08
it's not involved in Richard Fisher I
1:10
followed him out yes so you wrote this
1:12
book set up i like the title set up
1:14
that's the plan words can you just give
1:16
us a brief summary of why you decided to
1:19
write this book out called days at the
1:21
words that i use our are duty-bound oh I
1:25
i spent a long time inside the Fed as an
1:28
outsider as an outsider looking in and i
1:32
joined the Fed it going into the
1:34
financial crisis and i was there in the
1:36
years that followed it and what I
1:39
witnessed and experienced were so
1:42
alarming to me that I felt that I was
1:46
duty-bound to share my experience and
1:49
connect the dots for the average
1:51
American who might not appreciate the
1:54
intricacies of the institution but more
1:56
importantly how directly the Fed affects
1:59
their everyday investment decisions it
2:04
as well as spending decisions
2:06
ok i just wanted to get into the Fed and
2:09
I just wanted to clear up some things
2:10
that people might not know many people
2:12
do know this but is the Fed part of the
2:15
government but that is a hybrid if you
2:18
will the Federal Reserve district banks
2:21
are private institutions that remit the
2:26
remaining profits that they generate if
2:28
there are any after they cover their
2:30
operating expenses
2:31
to the Federal Reserve in Washington and
2:34
the Federal Reserve in Washington then
2:35
transmits any profits after it covers
2:38
its operating expenses to the treasure
2:40
in the form of remittances so the best
2:42
way I can describe the fed to the
2:44
average American as is that the 12
2:47
district that the 12 districts email
2:50
addresses and in dot o RG and those in
2:54
washington DC like Janet Yellen her
2:58
email address and in dot govt so it's
3:01
it's a private public institution it's
3:04
both
3:05
okay and who are the people running the
3:07
fit i mean who are they what are they
3:08
part of well they're mainly part of
3:11
academia who are they what are they part
3:13
of a rin it didn't used to be that way i
3:16
don't mean to be flip but but the people
3:19
running the Fed are mainly PhD in
3:22
economics whose decision-making revolves
3:25
around theoretical models these
3:28
theoretical models is just things where
3:30
they're sitting you know in a setting
3:32
where they're just you know thinking
3:34
about how they should approach the
3:35
economy i mean are they out on the
3:37
street are they looking at what's
3:39
happening with the people are they
3:41
really do they have their ear to the
3:43
ground of knowing what's really going on
3:45
no I think that's I think that you're
3:47
driving at the core of really what's
3:49
gone along with the Fed is that there's
3:52
not enough practicality and pragmatism
3:55
it within the institution if something
3:58
is going on in the real world doesn't
4:00
happen to fit into one of their
4:02
econometrics models then it simply
4:04
dismissed and that goes a long way
4:07
towards explaining why the fed missed
4:09
the financial crisis when a lot of
4:11
people who did have their ear to the
4:13
ground myself being one of them thought
4:15
coming is the Fed than working in the
4:18
best interest of the American people
4:20
well no that's kind of a rhetorical
4:21
question and i would have to say no that
4:24
the Fed has not been acting in the best
4:26
interests of the American people
4:27
otherwise you wouldn't have had now the
4:30
second largest generation in the country
4:32
the baby boomers course the Millennials
4:33
are a larger generation population life
4:36
but you really wouldn't have a have
4:38
abandoned the retiree class in this
4:40
country with the specter of zero
4:42
interest rates
4:44
add that truly had their best interests
4:46
in mind so with all this currency
4:48
printing or creation with QE the Fed
4:53
buying up the toxic real estate from the
4:55
banks is the Fed actually working for
4:57
wall street then
4:59
well i don't think anybody fed would
5:00
answer in the affirmative to that
5:03
question but that has been one of the
5:06
they would tell you unintended
5:08
consequences is that fed policy has
5:11
unfairly benefited Wall Street and that
5:15
it has unfairly detrimental the average
5:18
American IE main street but I don't
5:21
think that's what they think that they
5:23
were doing but again to go back going
5:27
back to early observation is their ear
5:29
to the ground
5:30
no I don't think it is I think that they
5:32
believe that the so-called wealth effect
5:33
actually exist on planet earth where it
5:36
really doesn't the wealth is not trickle
5:38
down to every working American so since
5:41
2008 since the the crisis that we had
5:44
the great recession up into this point
5:46
which is almost nine years later as the
5:49
economy actually improved after
5:51
everything the Fed has done i think it's
5:53
it's fair to say that jobs have been
5:55
created and that home prices are
5:58
certainly risen and that asset prices
6:02
like stocks and bonds have have also
6:04
risen in value has the economy itself
6:08
improved you know if you look at
6:11
economic growth from the time that we
6:14
emerged from recession in 2009 until the
6:17
just reported year and final 2016 gross
6:21
domestic product has averaged
6:23
one-point-eight percent so i would have
6:25
to say no the economy really has not
6:29
improved or not technically in recession
6:31
the way it's defined but improved i
6:34
think is something at the stretch given
6:36
this is the most anemic economic growth
6:39
we've seen in the post-world War two ERA
6:40
you talk about jobs and there's a lot of
6:43
individuals that look at the job numbers
6:45
and they're saying that these job
6:46
numbers aren't really reflecting the
6:49
actual people at work because they're
6:52
saying a lot of it once a lot of jobs
6:54
one from
6:55
full-time to part-time a lot of people
6:57
are out of the labor force but they
6:58
still want a job and when Trump was
7:00
actually campaigning a lot of people
7:02
looked at this and said you know you
7:04
know he's right there's a lot of people
7:06
out of work and and people aren't
7:09
working right now defend actually see
7:12
this as a problem where they feel that
7:15
the labor market is strong
7:16
unfortunately I think they believe that
7:19
the unemployment rate that is reported
7:23
every month in the headlines is
7:25
indicative of success on their part up
7:28
but by the same token i think that they
7:33
recognize that the labor force
7:34
participation rate or the flip side of
7:37
it is the employment to population ratio
7:39
is certainly not what would indicate a
7:42
robust and strong jobs market which is
7:46
why they continue to keep interest rates
7:48
as low as they are hoping that this tool
7:52
will help create more jobs but this far
7:56
into again a very anemic recovery you
8:00
would have to start to observe that
8:02
they're using the wrong tool that it is
8:04
not it is not and should not be the onus
8:08
and federal reserve to induce strong job
8:12
recovery that that produce strong wages
8:14
and incomes now the Fed has been talking
8:16
about interest rates raising interest
8:19
rates they said last year they were
8:20
going to raise interest rates you know
8:22
maybe three times during the year they
8:23
only have one so now in 2017 they have
8:26
said they're going to raise interest
8:27
rates once again from working with the
8:30
Fed and seeing what's out there
8:31
do you believe that they will be raising
8:34
interest rates three times this year
8:36
well they're going to have to get
8:37
started when the market does not expect
8:39
for them to get started
8:40
they were a bit more dovish than the
8:43
than was anticipated coming right out of
8:46
the gate with their first statement on
8:48
temporary the first and so the market at
8:50
that point reduced its expectations for
8:53
lighting interest rates at the upcoming
8:55
march meeting so so the Federal Reserve
8:58
only tends to raise interest rates if
9:01
there's a press conference that follows
9:02
the decision that leaves them with for
9:05
opportunities in 2017
9:08
they'll really have to change the
9:11
persistent the perception of a of an
9:14
interest rate increase in march in order
9:16
to even begin fulfilling that commitment
9:18
of three times if they don't raise
9:20
interest rates in March that means that
9:22
they'll have to raise that's at the
9:24
other three meetings where there's a
9:26
press conference that follows which kind
9:28
of backed him into a corner in the same
9:30
spirit that they were backed into a
9:31
corner in 2016 and had to renege on
9:34
their caucus that the Fed is continually
9:37
out there and there I mean I see the
9:40
minutes and they say that the economy is
9:42
doing well you work for the Fed and you
9:45
saw what was coming up in the 2008
9:47
crisis when you look today
9:51
do you see that we're headed towards
9:53
another crisis i try and keep a positive
9:56
lookout out their outlook i would say
10:01
that American banks are not as capital
10:05
constrained or as weak as they were
10:07
going into 2008 because there has been
10:10
some repair that's gone on those balance
10:13
sheets but by the same token we don't
10:17
know how interconnected we are on a
10:19
global basis in the aftermath of all of
10:22
this quantitative easing other global
10:25
banks blowing out their balance sheets
10:27
in the same way that we have here at the
10:29
Federal Reserve United States and asset
10:33
valuations are more stretched then they
10:35
were maybe not in residential real
10:37
estate that's certainly the case in
10:39
commercial real estate and in the bond
10:42
market and got the stock market is
10:45
almost at its peak overvaluation levels
10:48
as well so will the financial crisis
10:51
that's become look the same as that
10:53
which arrived in a way to no.9 probably
10:56
not but that doesn't mean that there
10:59
won't be a substantial amount of wealth
11:01
lost going forward when these different
11:04
and multiple bubbles do eventually
11:06
implode under their own weight
11:09
i mean you're talking about bubbles and
11:11
many times the Fed is out there and they
11:13
say they don't see any bubbles
11:14
whatsoever
11:15
is that you actually see bubbles and in
11:17
the market in real estate and maybe Otto
11:20
and student loans did you actually see
11:22
bubbles
11:23
I mean bubbles is a word that is just
11:25
overused but if you look at for example
11:30
consumer credit United States because
11:33
you just said auto loans and student
11:34
loans right now it's almost twenty
11:37
percent of economic output consumer
11:40
credit outside of mortgages that's two
11:42
percentage points above where it was at
11:45
its former peak in 2008 so households
11:49
are definitely more stretched than they
11:52
have been again maybe not in mortgages
11:55
but when you add up some of the default
11:58
rates that we're seeing in FHA mortgages
12:01
which is really the only way for uh for
12:04
but for households with stretch budgets
12:06
to make low down payment down payment on
12:10
mortgages and get into a home if you
12:12
look at the default rate there about
12:15
four percent if you look at the default
12:16
rate on student loans about eleven
12:18
percent if you look at the default rate
12:20
on subprime auto loans about that love
12:25
that the losses are running about 8%
12:26
sorry i don't know that that default
12:28
figure 2 top of my head but you are
12:30
seeing stresses emanate from the
12:33
household sector which tells you that
12:36
the size of the debt has grown to be um
12:41
is going to be much too large bubbles
12:43
usually talk about bubbles and asset
12:45
classes and is a bond market in a bubble
12:48
I would have to say that that's the case
12:50
because it's a three trillion dollars in
12:52
global losses suffered just in the few
12:54
weeks that followed the election because
12:56
the bond market took a step back and you
12:58
talked about debt
13:00
I mean right now the United States in 20
13:03
trillion dollars worth of dead two
13:05
hundred trillion of that global global
13:08
market I mean we have a lot of debt and
13:11
what I've seen in the passes that the
13:13
tax revenue coming into the government
13:15
has continually dropped declining right
13:17
now if you look at the state level if
13:18
you look at the federal level the tax
13:21
revenues coming in are dropping
13:23
can we sustain this debt right now
13:27
well we can sustain the data is long
13:29
the rest of the world allows us to is
13:32
the long story short would have US
13:34
dollar remains well the US dollar
13:36
remains the reserve currency and that
13:39
means that foreign countries will still
13:42
have to continue to pony up at our
13:43
auctions and support our debt so
13:46
mathematically speaking unless you're
13:47
talking about Armageddon we can continue
13:49
to support this get that being said
13:52
you're right the budget does not work
13:54
and at towards the end of last year we
13:57
were put on notice of the country
13:59
because our deficit started to rise as
14:00
well so if interest rates rise at any
14:05
kind of an appreciable rate the debt
14:07
service of the country will quickly
14:09
engulfed the budget and we will have
14:11
serious problems and I'm worried about
14:14
the ability to service the US debt I
14:16
worry about the ability of corporations
14:18
to service their record debt levels if
14:21
you look at non-financial corporations
14:22
and again I go back to households as
14:24
well who have tacked on enormous amount
14:26
of get over the past few years and they
14:29
could seriously not afford interest
14:30
rates to rise against that backdrop if
14:32
we cannot service the dead at that point
14:35
ever comes
14:36
what do you see happening in the economy
14:37
then what these are these are questions
14:39
that are very difficult to answer right
14:41
the last time something like this
14:42
happened china was a global super parent
14:44
you're talking about 1913-14 in the
14:47
years that led up to the great
14:48
depression that's what happens when
14:50
countries can't service debt you end up
14:53
with currency wars and trade words that
14:56
follow followed by Wars and that's what
15:00
happens that's why that there there's a
15:02
tremendous amount of anger which is one
15:04
of the reasons I wrote the book because
15:06
the average American can't figure out
15:08
why they can't get ahead
15:11
well they can't get ahead because the
15:14
culture inside the federal reserve has
15:16
been one that has promoted debt creation
15:19
at this at the expense of long lasting
15:24
prosperity and that's not something that
15:27
can continue indefinitely without
15:29
serious consequences but I would never
15:31
bring up the whole idea of war as in
15:35
warfare related to an economy if it
15:39
wasn't that serious but i think that it
15:41
can become that
15:42
areas over time especially if other
15:46
global economies have to engage
15:48
themselves to try and keep their
15:50
economies afloat which end up trading
15:53
tension across global lines former
15:55
senator ron paul and I'll Senator Rand
15:58
Paul and other senators they're pushing
16:00
a bill to audit the Fed and it seems
16:03
like the Fed continually fights that
16:04
they don't want to be audited what are
16:06
they so afraid of what are they worried
16:08
about if they are audited
16:10
well i don't think that the Fed wants
16:13
anybody to question the way that they
16:15
make monetary policy
16:17
they're very protective of that which is
16:20
understandable we need an independent
16:21
central bank i disagree with the
16:25
Senators on the idea that we should end
16:28
the fed I wouldn't want the banking
16:30
system to run off into the sunset
16:31
completely unregulated arm but i do
16:35
think that there needs to be more of a
16:37
check and balance on what has
16:39
effectively become the fourth branch of
16:40
the u.s. government the federal reserve
16:43
and i think that the onus is upon
16:45
Congress and the administration to put
16:49
dissenting voices on to the federal
16:51
reserve board so that we don't
16:53
necessarily have to come in and say this
16:55
is absolutely how you have to conduct
16:57
yourself and you you have to be a you
16:59
have to go by this or that rule in
17:01
making monetary policy and be
17:03
disciplined inside of a box but i do
17:06
think that if you had more people among
17:09
federal reserve officials who were able
17:11
to dissent and were able to disturb that
17:14
culture of groupthink that we wouldn't
17:17
be in the situation that we were in
17:18
today with people demanding an audit of
17:20
the Dead you have to go down to the stud
17:23
and invite descent on to the federal
17:26
reserve board i think the opposite way I
17:28
think that it's the people of the
17:31
country that should be involved and
17:34
looking at what the Fed is doing i no
17:36
its private but i believe that the fed
17:39
as a private corporation gets away with
17:42
a lot of things and the people of the
17:44
country because before the said there
17:46
was no said it was the government
17:48
creating currency and now we have this
17:51
debt base model which looks like it
17:54
can't go any further
17:56
and at the at this time I don't see the
17:58
purpose in the Fed I don't see what
18:01
benefit it gives to the people because
18:03
they're actually loaning currency out to
18:06
the public with interest and the people
18:08
then they have to pay for this in the
18:10
long run with taxes and actually if you
18:12
look at the debt load in the country
18:15
there's really no way to pay this back
18:17
at all
18:18
no there's not and your white that the
18:20
Fed has stopped working for the people
18:24
of the country but that doesn't mean
18:26
that the institution needs to go away
18:28
the word that i use means it is up and I
18:32
don't think we need a thousand PhD
18:34
economist at the Federal Reserve all
18:36
coming up with the same conclusion
18:38
looking at the same data i think that
18:40
the budget in terms of the research that
18:42
needs to be slashed and that the budget
18:45
in terms of providing the bank's needs
18:47
to be greatly increased so that we can
18:50
stay one step ahead of those on Wall
18:52
Street who are creating the Securities
18:55
and assets that makes there specifically
18:58
to get around the regulators and stay
19:00
one step in front of the Fed I think we
19:03
need to have the smartest people at the
19:06
table and have people who have been on
19:08
the receiving end of that policy to make
19:11
sure that set policy is designed for the
19:13
people at the Federal Reserve you have
19:16
to start at the very foundations and put
19:19
make sure that if the Federal Reserve
19:22
cooks up a concoction that they actually
19:24
have to taste their cooking and eat it
19:27
themselves before passing it out on the
19:30
menu
19:30
everybody else you know because when I
19:32
look around the world i mean this is
19:34
what i say this is and many people who
19:36
listen to what I report and and what I
19:40
talk about is the Fed around the world
19:43
not just here in united states that the
19:44
ECB the IMF the central bank systems we
19:48
look around Europe
19:49
I mean that they have huge amount of a
19:52
high very high unemployment most of the
19:54
countries are in debt there at negative
19:57
interest rates and they're continually
20:00
purchasing a corporate bonds therefore
20:02
you know they're monetizing the debt the
20:04
same thing in the United States to
20:05
monetizing the debt
20:07
they're buying Treasuries
20:09
and right now over this period of time
20:12
it seems like the system is completely
20:14
broken down and right now the people at
20:18
at the bottom they are completely
20:20
suffering through all of this and it
20:23
doesn't seem like it's getting better as
20:25
they continue on with their policies
20:27
well I would push back a bit i would say
20:31
that the people at the very bottom are
20:34
doing okay we've had one of the quietest
20:37
expansions of the social safety net
20:39
since FDR was an office i would say that
20:42
people right above them are suffering
20:44
the most the people who get up every day
20:46
and go to work and pay their taxes and
20:50
stretch themselves to pay property taxes
20:52
to cover underfunded pensions that have
20:55
been corrupted and cannot put food on
20:59
the table and are forced to take out a
21:01
subprime auto loan in order to get back
21:04
and forth to work to stretch that
21:06
payment amount i would say it's the it's
21:08
the run right about there being hollowed
21:11
out and being a disservice to the most
21:15
by Federal Reserve policy it's those who
21:17
want to continue to give that has been
21:20
destroyed the greatest degree and who
21:23
are arguably really angry and deservedly
21:28
cell
21:28
yes i do agree with you on that it is
21:30
the middle classes kind of disappearing
21:33
but I mean if the bottom rung if we took
21:35
away all those short social programs
21:37
food and food stamps number of people on
21:40
food stamps ever have gone up
21:41
dramatically if the government couldn't
21:43
pay for that anymore it would be pretty
21:45
much almost everyone except for the very
21:46
wealthy that would be suffering right
21:48
now I since Trump has become president
21:52
do you think he's going to approach the
21:55
said and end the fed why don't you get
21:57
ended I mean he's he's got a lot of
21:59
things he wants to spend money on last I
22:02
checked and for that you need somebody
22:05
controlling the leavers of interest
22:06
rates so when people ask me about Trump
22:10
my stock answer is I hope she introduces
22:16
the essential changes that are needed
22:18
inside the institution he had an
22:20
immediate opportunity an enormous
22:23
opportunity because there are two
22:24
vacancies on the federal reserve board
22:25
so he's got it in him he's got the power
22:29
right now to put to defending voices on
22:32
the federal reserve board i'll dig into
22:34
the weeds for just to be a bit with you
22:36
last September Janet Yellen was staring
22:39
down the barrel of a double descent on
22:41
the Federal Reserve Board Tarullo and
22:43
Brainard were very vocally threatening
22:46
the descent something that only happens
22:47
on the Federal Reserve or twice in the
22:49
last 21 years
22:51
so rather than withstand that she took a
22:53
triple percent from three district bank
22:55
presidents who were stepping down from
22:57
their voting rotation in December Yellin
23:01
does not want people on her inner in the
23:04
winter inner sanctum to say no and Trump
23:07
has an immediate opportunity to put
23:09
people on the federal reserve board who
23:10
will push back and we'll say no
23:12
immediately and then you will see other
23:16
people follow Janet yellen's term is
23:19
over in less than a year i think Daniel
23:23
Tarullo would follow if a check and
23:25
balance was placed in where he is i
23:28
think brainerd would leave as well and
23:30
Stanley Fisher's term is due up the vice
23:32
chair of the Federal Reserve Board in
23:34
June you're talking about six of the
23:36
seven feet on the federal reserve board
23:38
that are there for the picking for
23:40
president Trump to fill and completely
23:44
revolutionized and change the face of
23:46
that organization so I mean I said in
23:49
the Fed what happens if he decides to
23:51
get rid of the private part that part
23:56
but the privacy of the Fed to open up
23:59
and the government actually take control
24:00
of the Fed you think he'll make that
24:03
move
24:03
well I hope is a wise enough sold
24:06
understand the last thing we need is a
24:08
bunch of politicians running the Fed the
24:10
Fed become overly political as it is I
24:12
wouldn't want Congress writing it not on
24:15
behalf of my children because obviously
24:18
there's other ways of Independence and
24:20
reason bringing in complete outsiders so
24:23
i would hope that he would not invite
24:24
the Fox into the henhouse of the Fed I
24:27
mean I different that because the
24:28
Constitution when it was created in
24:31
look at you know coining money there
24:33
there was no fed I mean Andrew Jackson
24:35
ran on the platform of removing the
24:37
deciding with the second bank of america
24:39
with essential type of bank at that time
24:42
and I think we've come to this point in
24:45
time in our country where many things
24:49
need to change and personally I think
24:50
one of them is this the central bank
24:53
which is the Fed where it needs to have
24:55
a complete overhaul or actually just
24:57
completely remove it because I really
25:00
still do not see a benefit of a private
25:03
corporation creating currency out of
25:06
thin air and attaching interest on it
25:08
and loaning it to the government where
25:10
then filters down to the people and put
25:12
people into further and further debt
25:15
well I think we're agreeing to disagree
25:16
here because you're talking about the
25:18
way the Fed operates today as being
25:21
broken and in that sense i would say
25:23
absolutely it needs to be fixed it needs
25:26
to be re-engineered it needs to be
25:28
recreated you need to go down to the
25:29
studs so in that we agree it's whatever
25:33
central bank i think china was still a
25:35
huge party because they know that our
25:37
financial system is global and if we had
25:40
a narky inside of our banking system
25:42
then they would be that one step closer
25:44
to having their current CD the reserve
25:47
currency and overtaking our economy and
25:50
becoming the largest economy in the
25:51
world we have to understand that we are
25:53
interconnected in our global financial
25:55
system and the magic that is not a bell
25:57
you can ring which means you have to be
25:59
in it to win it
26:01
and again I say it one more time take
26:03
the Federal Reserve down to the studs we
26:06
are not a country anymore that we were
26:09
in 1913 you don't need to have all of
26:12
the decision-making centralized in New
26:15
York and in Washington you need to
26:17
decentralize it and put the powers
26:19
inside of the district where we have
26:21
economic growth and make sure that every
26:23
federal reserve district president is as
26:26
a permanent vote going forward against
26:29
you distill that power base that has
26:31
become so politicized in washington DC
26:33
you mention the the the dollar being the
26:37
reserve currency there are many out
26:39
there calling for a different reserve
26:41
currency
26:42
see where they're saying maybe the SDR
26:44
we see problems in the Middle East where
26:47
we had the petrodollar where these
26:49
countries are using the dollar to pay
26:50
for oil purchases and that seems to be
26:54
eroding away right now and we see right
26:58
now that there are many out there saying
26:59
that you have the dollar it's not going
27:01
to be the reserve currency anymore that
27:04
there is there are replacements that are
27:07
ready to take over
27:08
did you see that at all well given the
27:10
debt load of the country i think if
27:12
there was a viable alternative we would
27:13
already be there but the infrastructure
27:17
to have some kind of a of a hybrid or a
27:21
basket of currencies replace it with a
27:23
bit cone coin for example replace it
27:25
we simply don't have a payment system in
27:27
place globally that would withstand that
27:29
if we did I think we would be much more
27:32
vulnerable if we go out 10 years from
27:35
now and don't and that's the changes
27:37
that are required i think china steps
27:40
into that breach and replaces a dollar
27:42
and then we're in men were truly in the
27:44
soup
27:45
what are we going to do with are going
27:46
to tell our grandchildren then yeah I
27:48
mean that everything would completely
27:49
change and our way of life will
27:51
completely change at that point and
27:53
everything I mean you even mentioned
27:55
China because China and Russia they have
27:57
almost kind of duplicated everything
28:00
here in the United States they created a
28:01
payment system they created very similar
28:04
market the gold exchange the shanghai
28:07
gold exchange and it looks like they're
28:09
kind of duplicating what we have here
28:12
maybe to set up a them or you know China
28:16
or Russia or whatever to be the reserve
28:19
currency of the world and you know if
28:21
you don't know if you see that or you
28:22
heard about well i think that the
28:24
groundwork is sunlight but again china
28:25
tower four percent of the global payment
28:28
system on a practical level it doesn't
28:30
work but over time again these are not
28:35
changes that i'm talking about meeting
28:37
to be made over the next eight years i
28:40
think these are immediate changes to
28:42
have to be effective immediately because
28:46
as you mentioned they'd at least
28:48
followed us in principle if not in
28:51
practice
28:52
and laid the groundwork for them to one
28:56
day take over and the longer we wait the
29:01
more more vulnerable we become to that
29:04
becoming individuality neither of them
29:06
have strong enough banking systems
29:08
resources or economies to take over the
29:13
United States at this point it's just
29:14
not a it is not a reality that that can
29:17
come to pass anytime soon china banking
29:19
system is largely known to be insolvent
29:21
and the corruption in Russia is that
29:23
prevents them from being a true viable
29:25
alternative but again you never know
29:27
what tomorrow holds
29:29
if the anger that is at the core of the
29:33
global inequality divided continues to
29:36
simmer and is left unchecked and I go
29:40
back to what I said earlier you begin to
29:42
lay the foundations for World War
29:46
because that's what happens when
29:48
economic strife is allowed to continue
29:51
to fester under the surface and the
29:55
anger continues to build not just among
29:57
Americans who were called the deplorable
29:59
but among the world quote-unquote
30:02
deplorable who work hard everyday I i
30:07
hate to look into the future and see
30:08
that as a possibility but to your point
30:11
all four of my children have been taking
30:12
a drink since they were four years old
30:14
the best defense is a good often Daniel
30:17
I really appreciate you coming on the
30:18
x20 report spotlight once again how can
30:21
people find your book and how can they
30:23
purchase it
30:24
uh well first of all follow me on
30:25
twitter if you will at DeMartino boots i
30:27
talked about the same subjects you and I
30:29
discussed everyday 24-7 and sign up for
30:33
my newsletter at www.sedar.com and go on
30:37
Amazon go on
30:38
barnesandnoble.com going into books step
30:41
into your bookstore might like my books
30:43
out in on valentine's day go by the book
30:46
read it give it to your mother give it
30:49
to your children give it a big it pass
30:51
it out widely so that people can
30:54
understand that it's possible to forge a
30:57
pathway forward for the Federal Reserve
30:59
and for our economies future Daniel
31:02
thank you very much for being in the
31:03
spotlight once again i really do
31:04
appreciate it thanks
31:05
very much thank you so much for your
31:07
time